TOWN OF OCEAN CITY

FISCAL YEAR 2019 ADOPTED BUDGET

SERVICE CENTER FUND AND IMPOUND LOT

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BUDGET HIGHLIGHTS:

 

REVENUE:

Fuel revenue is dependent on fuel cost, and the Energy Administration has projected that both gasoline and diesel fuel rates will decrease from the rates budgeted in FY 18. Although the number of gallons of each type of fuel is anticipated to remain essentially the same, overall fuel revenue decreases. Parts revenue has also been projected to decrease for FY 19. Labor rates for light equipment are set at $67 per hour and labor rates for heavy equipment are currently $86 per hour. It has not been necessary to increase labor rates for several years. Vehicle labor revenue has also been budgeted to decrease for FY 19.

 

PERSONNEL CHANGES:

Nineteen full-time employees are funded in the Service Center budget and there are two full-time positions in the Impound Lot. A step increase effective on January 1, 2019 has been included. Funding has been included for a seasonal vehicle technician. In the Impound Lot division, funding for seasonal staff increased, but the employee benefit costs decreased. Allocations for health insurance, retiree health, pension and unemployment decrease for this division. A tool allowance of $500 per mechanic has been included in the Service Center budget.

 

CHANGES IN OPERATIONS:

Contracted Services expenses are expected to increase. This category includes building and equipment maintenance, training and travel, printing costs and tipping fees, as well as other contracted services. Training includes attendance at the National Procurement Institute conference for one employee, online training for Purchasing staff, and automotive training for the mechanics. Building and equipment maintenance costs are projected to increase $8,258 to cover maintenance contracts and repairs for HVAC, overhead door, and generator systems. Supplies and Materials decrease $36,076. The FY18 budget included the purchase of an electric forklift, and a wireless lift for the garage. An intelligent diagnostic center for the garage has been budgeted at $19,000 in FY 19. Purchases of fuel and inventory are the major expenses in this department. Vehicle fuel is purchased by this department and charged to all other City departments as it is consumed. This expense is reflected in the vehicle fuel line item in all City departments and is a notable cost for Transportation, Solid Waste and Police. Vehicle fuel costs are expected to increase, but to remain lower than the FY 18 estimated costs. The number of gallons purchased is expected to decrease by 4,700 gallons. The estimate for fuel purchases has been decreased $205,757 from FY 18. Estimates of inventory for parts and supplies has been budgeted to decrease $27,391 for FY 19. Energy costs for this department are anticipated to decrease. Intragovernmental allocations for vehicle lease and general overhead increase for this division, while the allocation for IT services decreases.